Beyond its reputation as a startup haven, is Berlin also a great place to grow your company and thrive?
Berlin has quickly established itself as one of Europe’s most prominent startup ecosystems, offering a unique combination of creativity, affordability, and a thriving support system for early-stage ventures.
Yet, the city faces challenges, particularly in scaling businesses, due to funding gaps and infrastructure limitations.
In this episode, we dive into Berlin’s strengths and challenges as an international business hub, focusing on the journey of Lubomila Jordanova, founder of Plan A and Greentech Alliance, Obama leader, MIT under 35 Innovator.
Lubomila chose Berlin not just to start, but to grow her company over Paris or London.
Through her experience, we uncover how Berlin’s startup environment helped fuel her vision, while also understanding the gaps that remain for businesses looking to scale.
Lubomila’s insight offers a compelling look into what makes Berlin an excellent city to start a business, and what could be improved. During the Unboxing the Future live event, she candidly reflected, "Berlin is an amazing incubator for ideas—its openness and diversity allow people like me to experiment with business models in sustainability. But there comes a time when scaling pushes you beyond Berlin's borders."
In recent years, Berlin has risen to become one of the top three startup ecosystems in Europe. In 2022 alone, the city attracted €10.5 billion in venture capital, placing it just behind London and Paris in total funding volume.
Berlin ranks 16th globally in Startup Genome’s 2022 Global Startup Ecosystem Report and has become a global leader in fields such as artificial intelligence, deep tech, and, notably, sustainability—which aligns perfectly with the mission of Jordanova's companies.
Lubomila Jordanova, a Bulgarian native, chose Berlin as the headquarters for her climate tech company, Plan A, after feeling a strong connection to the city’s openness and experimental culture. She recalled her early days, saying, "In 2016, I came here by chance—just visiting friends—and I ended up staying. I had a free month at a co-working space, met incredible people, and realized Berlin was where I needed to be to launch Plan A."
Plan A, launched in 2016, aims to help companies monitor, reduce, and offset their carbon footprints using data and science-based methodologies. The decision to base Plan A in Berlin was driven by the city’s culture of collaboration and its green-tech focus. Jordanova described Berlin as an ideal environment for budding entrepreneurs, especially in the field of sustainability. "Berlin is a place where people are not afraid to experiment," she said. "It has a unique creative energy that allowed us to test ideas without the same pressure that other cities might impose."
Plan A’s early success was also fueled by Berlin’s affordable cost of living and access to international talent.
The city draws creative minds from all over the world, offering a pool of highly skilled workers eager to be part of forward-thinking ventures. Plan A’s team now includes over 150 employees spread across offices in Berlin, London, Munich, Paris, Stockholm, and Sofia. This international expansion, however, was a necessity, as Jordanova realized the limits of scaling solely from Berlin. She noted, "Berlin allows you to scale to a certain point, but eventually, you need to go beyond it to access the capital and markets necessary for larger growth."
Berlin’s collaborative spirit has been instrumental in Plan A’s growth. The city fosters a sense of openness, where entrepreneurs, freelancers, and creatives frequently come together to exchange ideas and collaborate.
Co-working spaces such as betahaus and Factory Berlin have created hubs for innovation, enabling startups to connect with one another and share resources. Reflecting on her time at Betahaus, Jordanova stated, “This place was my first connection to the city’s startup community. The people I met there not only helped me build the foundation of Plan A but also inspired me to create the Greentech Alliance."
The Greentech Alliance, another brainchild of Jordanova, was launched in Berlin and has since grown to over 5,000 members. It brings together startups, investors, and industry experts who are working on solutions to tackle climate change. This network has not only amplified Plan A’s mission but also created a broader impact by connecting like-minded entrepreneurs in the city and beyond.
"The city is a breeding ground for collaboration," Jordanova shared. "If you’re looking to build something that can change the world, Berlin is the place where you’ll find people willing to support you."
Despite its many strengths, Berlin presents challenges for companies like Plan A that reach the scaling phase. One of the primary hurdles is access to late-stage funding. While Berlin offers excellent support for early-stage startups, it lacks the depth of venture capital found in cities like London, Paris, or Silicon Valley. "For the first three years, no one wanted to give us money," Jordanova recalled. "It was incredibly difficult to convince investors that sustainability could be profitable."
Berlin’s infrastructure for scaling businesses is also underdeveloped compared to other major cities. While the city excels in providing the resources needed for startup growth, it often falls short in terms of the financial and institutional support required for larger-scale operations. Jordanova noted that while Plan A has succeeded in Berlin, the company had to open offices in London, Paris, and other cities to maintain its upward trajectory.
"Berlin is an incredible place to start, but once you hit a certain point, you need to expand internationally to grow," Lubomila explained. "There simply aren’t enough resources here to support businesses that are scaling rapidly."
While challenges remain, Berlin offers several unique advantages that can help companies scale, particularly for those with an international mindset:
To address the challenges of scaling in Berlin, Jordanova suggests several key improvements:
For entrepreneurs aiming to start and scale their businesses in Berlin, here is a practical framework based on Jordanova’s experience:
Berlin provides an exciting and supportive environment for early-stage startups, particularly those in sustainability and technology. However, to fully realize its potential as a global business hub, the city must address its funding gaps and scaling infrastructure. Through the experiences of Lubomila Jordanova and Plan A, it’s clear that Berlin is an excellent place to start a company but requires a global strategy to scale successfully. By building on its strengths
Check out impressions of the live Unboxing The Future Event with Lubomila on Instagram (video snippets) here and on Linkedin (photos) here
Watch/listen to the full Unboxing The future episode with Lubomila on Youtube and on Spotify
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